Home Prices in Roseville Up Slightly in November

The median home sales price in Roseville rose 1.1 percent in November compared with the same month a year ago, bucking the Twin Cities-area trend, according to the latest data from the Minneapolis Area Association of Realtors (MAA).

Roseville's median home sales price was $179,500 in November, up from $177,500 from the same month in 2010, MAAR reported. In contast, the Twin Cities median home price was $149,250 in November, down 10.1 percent from the same already-depressed level in the same month a year earlier.

Meanwhile, Roseville had no change in closed sales for November compared to the same period in 2010 while the number of new home-for-sale listings jumped 37.5 percent in the year-over-year comparison.

Lisa Meyer, Edina Realty branch manager in Roseville, said she was surprised by the dramatic increase in new listings but said that fall selling activity was encouraging.

"This is the most activity with pending sales activity (in the fall) in the last five years," Meyer told Roseville Patch. "Most of our agents have had their busiest fall in many years."

Meyer noted that Roseville's inventory of homes for sale dropped 28.9 percent in November compared to the same month last year, a statistic that is likely to help stabilize home prices in the near future. "I think there will be new opportunities for traditional sellers," she said.

Regionally, MAAR reported, the residential real estate market is still in the toilet--but at least the toilet is no longer plugged.

The median home price in November was $149,250, down 10.1 percent from its already-depressed levels in the same month a year earlier. That’s largely due to so-called “lender-mediated activity,” shorthand for foreclosures and short sales, which comprised 44.1 percent of all closed sales and 41.9 percent of new listings.

But the number of homes for sale in the 13-county Twin Cities metropolitan area plunged nearly 24 percent from last year to 19,516--the lowest November inventory reading since 2004. In addition, November 2011 marked only the third month in more than five years in which there was less than six months supply of inventory. Sellers listed 4,102 new homes on the market, down 13.6 percent from last year. Buyers entered into 3,321 purchase agreements, up 30.2 percent over November 2010.
 
Ordinarily, such a big drop in inventory would indicate a rising market, but “prices are still bound by distressed activity, budget-conscious consumers and a general sense of economic uncertainty," said Brad Fisher, MAAR’s president.
 
Some sellers, at least, are benefiting  from less competition. The share of asking price that sellers receive at sale has now posted year-over-year increases for the fourth consecutive month. In November, sellers across the Twin Cities region received an average of 90.9 percent of their asking price. That figure was likely helped by the 30.6 percent decrease in the supply of inventory–currently at 5.7 months. Generally, a market with five to six months of inventory is considered balanced.
 
The first and fourth quarters of the year tend to see the most distressed sales and listing activity. Consequently, traditional prices fell 9.2 percent to $187,400, foreclosure prices dropped 14.3 percent to $98,500 and short sale prices were down 11.5 percent to $130,000.
 
The good news: The housing affordability index hit a new record high of 245, meaning that the median household income in the region was 245 percent of what is necessary to qualify for the median-priced home under prevailing interest rates.
 
"Prices don't reflect the improved supply-demand balance yet," said Cari Linn, MAAR’s president-elect. "Although there are some reassuring patterns taking hold, it would be overly optimistic to say that all of the market's problems will be washed away by spring."